Housing Development Finance Corporation (HDFC) on Saturday (4 April 2020) said individual loans sold in the preceding 12 months amounted to Rs 24,127 crore, down 4.07% over Rs 25,150 crore sold in the previous year.
HDFC said its total loans assigned jumped 126.59% to Rs 5,479 crore compared to Rs 2,418 crore in the corresponding quarter of the previous year. It said that all the loans assigned during the quarter ended 31 March 2020 were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank.Individual loans sold in the preceding 12 months amounted to 24,127 crore compared with Rs 25,150 crore in the previous year.
HDFC's acquisition cost in RBL Bank is Rs 60 crore. As at 31 December 2019, the market value of the investment in RBL stood at 304 crore. The risk averseness in the financial sector which was exacerbated by COVID-19 disruptions resulted in a drop in the share price of RBL during the quarter ended March 31, 2020. Consequently, the market value of this investment at the quarter end stood at 120 crore.
As per Indian accounting standards, this investment is classified as Fair Value Through the Profit and Loss (FVTPL). Hence the debit to the statement of profit and loss for the quarter ended on 31 March 2020 is Rs 184 crore.
However, the difference between the market value of the investment as at 31 March 2020 and the actual cost of the investment to HDFC is a gain of Rs 60 crore, it said.
HDFC did not receive any dividend income from its subsidiary companies during the quarter ended on 31 March 2020 compared with Rs 533 crore received in the same period last year.
During the quarter ended on 31 March 2020, there was no sale of investments in subsidiary/associate companies as against a divestment of Rs 321 crore done in the corresponding period last year.
In a separate filing made on Friday (3 April 2020), HDFC said it will raise up to Rs 7,500 crore by issuing "AAA" rated secured redeemable non-convertible debentures (NCDs) on a private placement basis. The base issue size of non-convertible debentures (NCDs) is Rs 2,500 crore with the green shoe option of Rs 5,000 crore. The object of the issue is to augment the long-term resources of the lender, it said in a filing. The issue opens for bidding on 8 April 2020 and will close on the same day. The NCDs bear a coupon rate of 7.20% per annum and will mature on 13 April 2023.
HDFC's standalone net profit surged 296.1% to Rs 8,372.49 crore on a 91.7% jump in total income to Rs 20291.45 crore in Q3 December 2019 over Q3 December 2018.
HDFC is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India.
Shares of HDFC tumbled 5.36% to Rs 1499.40 on Friday (3 April 2020).
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)